Fannie Mae-No Politics (FNMA)

[FOFreddie]

No reason to sell. Dividends will most likely start in the next 10 years and institutional investors will continue to accumulate where they may possible own 60% of the float over the next couple of years. If the stock is $10 and you get a $0.30 dividend - why sell. The US Treasury 10 year is 1.15% today. If dividend is $ 0.40 - what is that worth?

Calabria did not say that shareholders were going to wiped out like Corker/Warner wanted. He probably just threw out the first negotiation salvo. - If the stock goes to $10 in 2 years - it is a 400% return.

As long as interest rates stay low and the housing market stays somewhat healthy - FNMA and FMCC would likely become worth more and more.